4.5 Sigma, Quality Culture etc.,

It is often touted that organisations aim to achieve the popular sigma metric that this methodology of reducing errors and variation in operational processes, has come to be known by - Six Sigma. Many are still unaware that the achievement of six sigma itself can come about only after a radical change in the functioning of these operations. It involves not just a green belt or a black belt project but could entail the complete overhaul of a process in order to achieve that ultimate stamp of approval.

So it is quite common, then at least in the initial stages that they set lower standards - like 4.5 Sigma which is not bad by itself. And no, I don't want to sound pessimistic - in fact I want to be pretty realistic and agree.

Why?

Any one who has even the remotest idea of six sigma will tell you that to make a movement to 1 or 2 sigma is relatively easy. It is when you get to 3 and above that the enterprise will have to not only change processes but also the culture of the organisation itself. Major outlays for Quality budgets and resources to support such a transformation will have to be made. And not just lip service - but leadership will have to live this goal and it will tax their minds to the hilt.

Why?
It is comparatively easy to commit fewer errors in a service industry if you start with minor improvements and deal with a process that is not even 1 sigma. Once you have dealt with the low hanging fruit" - then it starts becoming a discipline, and not just one of personal choice but of policy.

Systems have to be changed. One cannot be expected to allow people to perform at six sigma for example in a Call Center. Try it. It wont work!

Unless you get to a level of automation to deal with the routine types of calls which could constitute 80-90% of the call volume, you will not be able to have associates speak flawlessly while dealing with customers, given that during certain hours you are going to observe peak call volume on an intra day level.

It is my personal experience across various call center processes and my humble opinion that these centers cannot perform at six sigma. If there are exceptions I would love to hear their case and how their achieved it without automation.

Having said this, one cannot be expected to not raise the bar. Getting a service procedure done right, every time, the first time is a big start in setting the tone for what is expected to deliver a major positive impact to the bottom line. Tangible benefits apart this also helps boost morale.

An associate would loved to create and maintain fantastic Quality. At the same time if leadership forces it down their throats and expects them to perform under increasingly stressful work conditions then a point will inevitably be reached where the Quality will drastically suffer. I've known teams that have gone from 3 Sigma to 1 Sigma in a matter of weeks.

Given that people are people - other things being equal, an associate will answer a basic inquiry with a certain degree of variation. After all, not everyone is made alike! How do you expect to reduce variation on a basic inquiry when the very basis of human existence is diversity at least in being able to deal with situations?

So it takes a culture of getting to deal with the "bread and butter" of the process and strive for the least variation, measured and displayed prominently so everyone takes note.

Drive automation that filters out these calls - so Associates only deal with the exceptions, to the extent possible. Increasingly service centers are employing that ubiquitous solution - the IVR or interactive voice response system.

To a large extent - advances in the technology of these systems have made it possible to have an effective but "sterile" experience on the part of the customer.

Some surveys have often indicated that Customers still preferred "talking" to a live person rather than to a machine, no matter how ineffective that person was....it was just something natural to be able to do.

So to counter the possible backlash of a sterile IVR solution, companies still incorporate an option to speak to an operator - but this option is not obvious, you sometimes have to be patient for the IVR to "offer" you that option.

A suitable reward plan always works to drive the culture but it is often noted that there has to be a high degree of leadership involved to drive Quality. One great and passionate leader - will drive more quality than many Black Belt projects, and no I don't have statistics to prove it..!

Quality has to be seen beyond just "Six Sigma" or and ISO or whatever else you call it. It has to be a personal way of life in the way you operate and measure your work. And in order to drive and maintain this culture - an effective leader will do more, with their leadership than with a project. While projects are effective in focusing on the "how to", leadership will address the "why to".

The results of such Quality must also be widely publicised as part of the "why to". After all if you phone in to correct an error - often it is better if you don't have an error in the first place!

The amount of Quality Net Income (QNI) must be quantifiable and deemed a measure of how much of potential cost that would have "become" had that Quality measure not been put in place.

And of course some of that "Income" must be shared as part of the "WIFM" (what's in it for me?). And not just income but also an important part of one's goals!!


Chris Francis
19th May 2008